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| The Group actively seeking opportunities to grow O&G and building technical services businesses |
KUALA LUMPUR, Apr 27, 2022 - (ACN Newswire) - Propel Global Berhad is confident that the new corporate structure as well as the cash reserve resulting from a regularisation plan that will see it take over the listing status of Daya Materials Berhad on 28 April 2022 will support expansion plans for both the oil and gas (O&G) and building technical services businesses that the Group is acquiring from Daya Materials.
 | | Ms. Angeline Lee, Group Chief Executive Officer of Propel Global |
The Group will trade under the stock name PGB and stock code 0091 from 28 April 2022 on the Main Market of Bursa Securities Malaysia Berhad. The listing of Propel Global follows the approval by shareholders at an extraordinary general meeting (EGM) on 21 January 2022 of a regularisation plan for Daya Materials that had been proposed on 31 December 2020.
Ms. Angeline Lee, Group Chief Executive Officer of Propel Global said, "We would like to thank stakeholders for keeping the faith with us on the corporate exercises that will conclude with the listing of Propel Global. We have seen the private placement representing 41% of our outstanding shares fully taken up by prominent investors and industry veterans. As a result of the funding from the private placement, Propel Global has a healthy cash balance and minimal debt as the gearing ratio has been reduced to 0.6 times."
"The Group is actively exploring opportunities in the O&G industry especially in Sabah and Sarawak. High crude oil prices will encourage more investments into the industry, especially from oil majors. The country's borders reopening will spur business activities and therefore demand for oil and gas."
According to the US Energy Information Administration's recent Short-Term Energy Outlook, international crude oil benchmark Brent is expected to trade at an average US$108 a barrel in the second quarter of this year and US$102 a barrel on average in the second half of 2022.
"We will continue to concentrate on expanding our existing well intervention and pipe recovery business by training our field engineers to deliver a wider range of downhole well technology solutions for our clients. Over the mid-term, we are looking to venture into the wireline business as this will make us more competitive in the plug and abandonment as well as the decommissioning programmes for both downstream and upstream facilities."
"We also see more opportunities opening up for the building technical services business as foreign multinational companies (MNCs) investing in Malaysia set up their plants and facilities. We intend to leverage on the synergy from our construction and project management technical services as well as heating, ventilation and air conditioning operation and maintenance services to grow the building technical services business."
Propel Global also has mid-to-long-term plans to venture into sustainable development and digital technology as part of the Group's transition to a zero-carbon business focus that includes renewable energy and electrification.
About Propel Global Berhad
Propel Global Berhad is the listing vehicle that will take over the listing of Daya Materials Berhad on 28 April 2022. As part of the Group's listing, Propel Global will acquire Daya Materials' oil and gas ("O&G") and building technical services assets. These O&G assets include services in pipe recovery for drilling operations, downhole data logging and processing as well as chemical blending and supply for both downstream and upstream operations. The building technical services business provides design, engineering, construction, project management and maintenance & management of commercial and industrial buildings and facilities on a single-source platform to a wide range of industrial clients.
For more information, please contact:
Hakim Syed Munif
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz
Topic: Press release summary
Source: Propel Global Bhd
Sectors: Daily Finance, Local Biz
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From the Asia Corporate News Network
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